The central bank on April 30 determined that Sterling, based in Lantana, Fla., and Pierce Commercial, of Tacoma, were both "significantly undercapitalized."

The Fed has given Sterling 30 days to increase its equity or find a merger partner. Pierce has been given 60 days to take similar action.

Each bank also will be required to submit a plan and timetable to its respective Reserve Bank on "conforming the rates of interest paid on all existing non-time-deposit accounts to the prevailing effective rates of comparable amounts in the bank's market area."

Pierce would also be restricted from making any capital distributions, including dividend payments.